Why LONG EQUITY Own AMAT, ASML, CDNS & NVDA?
I've just updated my "Why We Own Them" paper.
It contains a short synopsys for each of the 12 companies in the portfolio.
1. $Applied Materials(AMAT)$
FCF ROC: 33%
FCF Growth: 24%
Applied Materials is the leading supplier of wafer fabrication equipment to the semiconductor industry. AMAT’s growth has been driven by the increasing complexity of semiconductor manufacturing and the rise of advanced technologies like AI, IoT and 5G. Future growth will likely come from continued innovation in semiconductor manufacturing processes.
2. $ASML Holding NV(ASML)$
FCF ROC: 14%
FCF Growth: 7%
ASML is a key supplier to the semiconductor industry of photolithography systems. The company’s growth is driven by the increasing demand for high-performance semiconductors used in AI, 5G and data centres. ASML’s competitive advantages include its dominant position in extreme ultraviolet (EUV) lithography, high entry barriers and strong relationships with major semiconductor manufacturers.
3. $Cadence Design(CDNS)$
FCF ROC: 31%
FCF Growth: 19%
Cadence Design Systems sells electronic design automation (EDA) software predominantly to the semiconductor industry. Cadence has benefited from the increasing complexity of chip designs and the demand for advanced electronic devices. Its competitive advantages include a comprehensive suite of design tools and long-standing industry relationships. Cadence is well-positioned to capitalise on its critical role in the design process.
4. $NVIDIA Corp(NVDA)$
FCF ROC: 49%
FCF Growth: 53%
NVIDIA is a leading designer of GPUs for AI, gaming, professional visualisation, data centres and automotive markets. NVIDIA’s growth has been fueled by the increasing use of GPUs in AI and data centres. NVIDIA's competitive edge comes from its cutting-edge technology and software ecosystem, i.e. CUDA. Future growth opportunities include AI, machine learning and autonomous vehicles.
https://longeq.com/wp-content/uploads/2024/06/Long-Equity-Why-We-Own-Them.pdf
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